Gurugram: Clear EDC to get papers for properties built on farmland

GURUGRAM: The Gurugram Metropolitan Development Authority(GMDA) will now charge 40% of external development charges (EDC) at the time of approving the building plan, and 50% before issuing occupation certificates (OCs) for all properties which earlier came under agricultural zone but are now part of the ‘urbanisable’ zone after change of land use (CLU). A notice in this regard was passed on Wednesday.

The order became necessary after changes were made in the Gurgaon-Manesar Urban Complex plan, and will mostly cover areas in new sectors and Manesar. “After changes in the development plan, it has become imperative that recovery of full EDC is made in cases where CLU is involved. While the money recovered might not be very high, it will still aid development,” said a senior GMDA official.

He added the authority had proposed to the government that 100% recovery be made before issuance of OCs in all cases involving CLU. But four months since they sent their proposal, the government is yet to take a decision. “Hence we decided to charge EDC in a staggered manner so that OC applications aren’t kept pending. The staggered payments, however, will be applicable only till the government takes a decision in the matter,” said the official.

A copy of the notice accessed by TOI stated EDC receipts by government are well short of expenditures made under this head, as far as the Gurgaon-Manesar Urban Complex is concerned. And the significant deficit in the EDC receipts is impeding fulfilment of development obligations in the city.

GMDA will be in a serious financial crunch if it fails to recover the funds under EDC charges soon from the state government. One of the authority’s major revenue sources is EDC, but in the last two years, it has not received any funds from DTCP, which has reflected poorly on GMDA’s books.

The issue was raised in GMDA’s budget meeting in April, in the presence of chief minister Manohar Lal Khattar, where DTCP assured GMDA it will release EDC funds soon enough. GMDA has also allocated around Rs 534 crore of development works to be funded from EDC charges. Beyond EDC, GMDA also plans to start levying stamp duty charges and excise charges.

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